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Sears protection agreement cancellation

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Update22
Sears

Retiree

Group P.O Box 80529
2300 Lawrence Ave. 4Z5
E-Mail: info@searsretireegroup.ca
Website: http//www.searsretireegroup.ca MARCH the Sears Retiree Group (SRG) enjoys condorsed by Sears.It is extremely important nd Sears Canada should be advised of a a change of address or notice of a retiree deathFurther, any questions you may have relatiun Life, the administrator of the companys her the qualifications nor the authority to CONTACTS:Sears retiree group (SRG)

see info on page header above.Sears Canada

Phone: do however welcome your comments and inquiissues of Update, name and address of your ications for SRG membership, ourIt is important to remember that if the re The Sears Retiree Group is an organizatirees year of retirement.

SECURITY 0F PENSIONS AND HEALTH & DENTAL BENEFITSAs described in previous Updates, Sears and K-Mart in the U.S.

were merged to form Sears Holdings.

Within that framework Sears Holdings has become Sears Canadas d about how this might affect the security of our pensions and other benefits that we formed a sub-committee to investigate.Their findings have PENSION SECURITYReliable sources, foremost among them are our legal advisers the law firm of

Koskie

its commitment to continue funding our pensions (which, incidentally, it has never conte unlikely event that Moreover should the company be sold or even It is important to note that this reassurance applies to ALL Sears pensioners.

A number 1999 gave it the right to amend or cancel the who are members of SRG have Defined Benefit Pensions.

These are based on some combination of years of employment, age at retirement and the

average of their best five of

their last tetheir own and the companys contributions to the pension fund over many years.However there is a maximum pension that can be paid from that fund which is currently about $70,000.The reason? Contributions from the company are tax exempt and there is a limit to the Federal Governments generosity
sears protection agreement cancellation
.This presents a problem for a small number of

Sears retirees whose pensions

amount.The portion of id out of a special supplementary fund set up by the company or taken directly from bobe vulnerable to any changes in company policy.

An Ontario government insurance fund, which is many other provinces, guarantees pension payments up to $12,000.a year in the event any company defaults on pension payments.

Since Sears is registered as an Ontario employer, should it default on its pension payments

an extremely unlikely province of residence would be eligible for pension payments of up to $12,000.a year.

We trust this explanation will clear up any misconception about pension security.We have the confidence of Sears management to the extent that we are partners with Sears H.R.

Department as members of the Health & Dental Committee which meets twice a year to review health and dental claims st beneficial and economical use of the various elements of the Plan.(See page 3 of the recent issue of Tribute) record speaks for itself in this regard.

to the generosity of our members.

We have as our legal advisors one of the top labor law firms in the country

Here are some possible issues for future concern:Sears opinion (shared by other major employers) that in the event of

the
wind-up of a company pension fund any surplus remaining would revert to the company.SRG will continue to point out that some sort of sharing unlikely to become an issue for Sears it has real implications for a lot of companies and their pensioners.A case for CFP? management to make changes to the In the event of a change in ownership of Sears any attempt to change or cancel benefits would be a major issue.A new owner would be required under law to continue the benefits.

SRG fall 2008 meeting of the joint Sears-SRG Health & Dental Committee referred to and large aside from inflationary impact there is little significant change from the previous year.One matter continually emerprescription drugs, which swamps every other element.

Retirees are encouraged to have their doctor They are much cheaper than brand names and just as effective.This is particularly important for retirees under plans and constitute the heaviest cost burden to our benefit plan..
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